Comments on: I just got approved for a credit card limit of 25k!

By: Elizabeth Tombrello

Elizabeth Tombrello — Wed, 10 Mar 2010 22:52:05 +0000

Great entry, and thanks for taking the effort to publish it; I’m sure other readers benefited too. It really opened my eyes for some new ideas that I hadn’t thought of before.

By: Credit Card Reviews and Ratings | Credit Card Lowdown » Carnival of Credit Card #4

Sat, 19 May 2007 03:22:29 +0000

[...] presents I just got approved for a credit card limit of 25k! posted at moneywalks. Andy has been trying to build his credit for about 3 years now, consistently [...]

By: Make Your Nut

Make Your Nut — Mon, 05 Feb 2007 17:41:04 +0000

Accepting the line of credit won’t decrease your FICO score (unless you went and maxed it out). In my opinion (always subject to be incorrect, of course), the theory that a high amount of available credit leads lenders to decline you because you may use it all is an old wives’ tale. It’s your overall utilization of your credit balances that impacts your score – keeping your balances at or below 50% of your credit limits will positively influence your FICO score. So, if you wanted to maximize your FICO score, you could take all of your existing credit balances (provided the sum is less than $12,500) and transfer them to the new card. As a result, you’d have 0% utilization on all of your cards except for one, and 50% utilization on the single card. Just don’t close the old cards, because you’ll reduce the average age of your accounts, thus lowering your score.

By: Andy

Andy — Mon, 05 Feb 2007 15:35:40 +0000

Ellen,

You are absolutely right. The ratio of debt is a major factor when computing your credit score. However, I have also heard that high limit on credit cards means you have high liability and more likely to owe debts. Overall, the way I see it is, if I don’t have the needs for a 25k credit card limit, why risk it when it might end up hurting me.

By: Ellen

Ellen — Mon, 05 Feb 2007 14:44:38 +0000

I was actually under the impression that the ratio of debt that your cards reported each month was what impacted the credit score, not the absolute limit of available credit. I mean, I realize that FICO is a bit opaque, but I’m not understanding how having a lower debt ratio will lower your score. Unless you think you’ll charge up to that limit?

By: Andy

Andy — Wed, 31 Jan 2007 21:14:12 +0000

Well that’s not the problem really because I have another credit card that has a balance of zero and if I wanted to I could transfer all the amount on there but I keep it on this current card because it has my lowest APR, which is at 7.9%.

I appreciate the input kris

By: Kris

Kris — Wed, 31 Jan 2007 18:54:01 +0000

Maybe you could have accepted that, transfered all of your credit debt onto your new card, that way you have a lower finance on your debt, until you pay it off of course…you did the right thing though in my opinion.